Moody's lowers Transocean

Moody's Investors Service said it downgraded the senior unsecured rating for Transocean, Inc. to Baa3 from Baa2 and its short-term rating to Prime-3 from Prime-2.

The agency also lowered the ratings for the debt at Transocean Worldwide Inc. (formerly GlobalSantaFe Corp.) and Global Marine to Baa3 from Baa2 and left those ratings under review for further downgrade.

The outlook remains negative.

"The downgrade to Baa3 reflects Moody's view that Transocean potentially faces significant liabilities exposure due to its involvement in the blowout and subsequent oil spill from the Macondo well and a concern as to whether it will be fully protected under its indemnification from BP," Ken Austin, a Moody's vice president, said in a statement.

"While the Baa3 can absorb a moderate amount of gross incremental debt to satisfy potential liabilities, the negative outlook considers ongoing uncertainty surrounding this situation and the risk that Transocean could face a more adverse outcome that could further weaken Transocean's profile."

Transocean's Baa3 rating considers the potential that the company could incur costs and liability related to its role as driller of the Macondo well, according to the agency.

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